NZ Privacy Chief Clears Supermarket Facial Recognition Trial Despite Concerns

New Zealand’s Privacy Commissioner, Michael Webster, has determined that the use of facial recognition technology (FRT) by Foodstuffs North Island (FSNI) during a supermarket trial complied with the country’s Privacy Act. The decision follows a formal inquiry that began in April 2024 and concluded with findings released yesterday.

Findings and Privacy Controls

The FRT trial took place from February 8 to September 7, 2024, across 25 supermarkets operated by FSNI in New Zealand’s North Island. Over the course of the trial, the system processed roughly 226 million facial scans. The vast majority of images – approximately 99.999 percent – were automatically deleted within one minute of capture. The technology generated 1,742 alerts during this period, with 1,208 resulting in confirmed matches against store-specific watchlists.

FSNI General Counsel Julian Benefield reported that the system had a measurable impact on safety. “Our trial prevented more than 100 serious harm incidents, including assaults, with a 16 percent reduction in harm being demonstrated,” Benefield stated.

The Privacy Commissioner acknowledged that facial recognition systems inherently involve a high degree of privacy intrusion. However, the report credited FSNI with implementing a number of safeguards to mitigate risk. These included the automatic deletion of non-matching images, strict rules for adding individuals to watchlists, dual staff verification before taking any action on a match, and a raised match threshold – from 90 percent to 92.5 percent – to reduce false positives.

Ongoing Concerns and Regulatory Response

Despite the trial’s compliance with existing law, concerns remain. A December 2024 incident in Rotorua drew national attention when a woman was mistakenly identified by the system and removed from a store. The matter led to a formal complaint and a case before the Human Rights Review Tribunal, highlighting the potential consequences of misidentification and the need for continued oversight.

These concerns have arisen alongside a broader national conversation about the governance of biometric technologies. The Privacy Commissioner previously announced plans to publish a draft biometrics code in early 2024 to guide the responsible deployment of facial recognition and similar tools. The final version of the code, along with more detailed Biometrics Guidance, is expected later in 2025.

Public sentiment has been mixed. A consumer survey published in late 2024 showed that many New Zealanders support the use of facial recognition in retail settings, especially when used for safety and theft prevention. However, privacy concerns continue to shape public discourse, particularly around transparency, consent, and the risk of technical bias.

Webster emphasized that future deployments of FRT in the retail sector must meet a high bar for necessity and accountability. While the Foodstuffs trial met legal requirements, the Commissioner’s office has stated that additional improvements would be necessary before the technology could be expanded or adopted as a permanent solution. The forthcoming guidance is expected to set clearer expectations for consent, oversight, and redress in the event of errors.

Sources: RNZ, 1News, Retail World Magazine

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June 4, 2025 – by Ji-seo Kim